A Depreciation of One's Currency Means That

question 33

Multiple Choice

A depreciation of one's currency means that

• A) the country's exports will become more expensive.
• B) the country's imports will become more expensive.
• C) the country's imports will become less expensive.
• D) it now requires less of this currency in exchange for one unit of another currency.
• E) it now requires more units of other currencies in exchange for one unit of this currency.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on amounts of money, reflecting the price of credit or returns on investment.

Personal Property

Movable property that is not attached to real estate, including vehicles, furniture, and personal belongings.

U.S. Government Bonds

Debt securities issued by the United States Department of the Treasury to fund federal government operations and obligations, considered low-risk investments.

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.